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Originally Posted by Merc1  Wow, that is a lot of dealers. Maybe they know something we don't. I think they'll do ok, if not a runaway success like Mini was. The thing is though, unless the sales are off the charts it will be labeled a failure by the press and you know what happens from there. Who knows they might be all over the place in matter of months. I know I couldn't be in charge of this, my nerves would be shot waiting to see what happens the first day they go on sale.
M |
I'm sure the smaller dealers that got a Smart franchise are on pins and needles. If you're already a DaimlerChrysler dealer, then it costs $300,000 USD franchise fee and a dedicated amount of square feet in your showroom with a separate entrance and separate sign. Then there are whatever expenses you incur in parts and service to meet Smart requirements, and of course, the capital financing for the cars themselves.
If you're not a DaimlerChrysler dealer (say, BMW-Mini dealer or a Honda dealer), the franchise fee is higher, and you are required to house the Smart franchise in a stand-alone building.
So, yeah, for a low-volume dealer, that's a pretty big investment. For a mega-dealer or a high-volume single-point dealer, it's not so anxiety-inducing, but for a small dealer, it could make or break his 2008 calendar year in terms of net profit.